MANILA, Philippines — Beleaguered broadcaster ABS-CBN is pulling the plug on TeleRadyo because of financial losses in the more than three years since the Duterte administration denied the broadcast giant a new franchise.
The move, announced in a disclosure sent to the Philippine Stock Exchange Tuesday, could mean job losses at what used to be a top-rated AM radio station that was forced to broadcast online because of franchise issues.
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A senior official confirmed to Philstar.com that all of TeleRadyo’s employees will be laid off as part of the move. Management was expected to meet with TeleRadyo staff on Tuesday morning to discuss the decision to cease operations.
The PSE disclosure did not mention layoffs or other measures and the company has yet to officially announce these.
“Since ABS-CBN can no longer sustain TeleRadyo’s operations, ABS-CBN is left with no choice but to cease the operations of TeleRadyo effective 30 June 2023 to prevent further business losses,” the statement read.
TeleRadyo is a pay television channel of ABS-CBN Corp. under its News and Current Affairs brand.
It made its TV debut back in 2007. After briefly being off fair following the cease-and-desist order issued against the media giant on May 5, 2020, TeleRadyo went back online on May 8, 2020. Since June 2021, it went on live on YouTube and Facebook.
“The company is deeply saddened by this closure and having to part ways with the many passionate and committed people who have made Teleradyo an important source of news and information for many Filipinos,” ABS-CBN added.
ABS-CBN did not disclose how much TeleRadyo’s operations left them in a financial hole. What is clear is that the loss of its franchise, which came as former President Rodrigo Duterte went on a warpath against the broadcaster following its critical coverage of the administration’s public policies, proved too much for the broadcaster.
Jobs that will disappear as a result of TeleRadyo’s demise tallied higher for the media workers' scorecard. Around 11,000 were expected to be affected by the franchise denial, not counting businesses around the network's Quezon City complex and the suppliers and production units that its shows and programs dealt with.
As it is, ABS-CBN sought other revenue streams to keep its operations alive in the months that followed the franchise denial. They sought partnerships, and even found a new channel to share, standing in as its new home for its flagship broadcast operations.
The broadcaster sought out a partnership with its rival, Gozon-led GMA Network Inc. The partnership wasn't blocked by House lawmakers, which birthed a joint teleserye production and the latter widening its international audience reach by streaming through ABS-CBN's iWantTFC.
Philippines media companies still depend on ad revenues as the lifeblood of operations, so much so that the loss of a broadcasting franchise could scuttle advertisers.
The years that followed the franchise denial were one of the most difficult for the Lopez-led broadcaster, which survived Marcos Sr.’s dictatorship.
A milestone deal in 2022, between TV5 and the broadcaster, was supposed to keep financials in the green. Weeks after disclosing the investment agreement, the two media companies “mutually agreed” to terminate the deal.
Joint venture
Within the same disclosure, ABS-CBN announced it would be entering a joint venture with Romualdez-led Prime Media Holdings Inc. The joint venture was approved by ABS-CBN's board of directors on Tuesday.
Following the signing of the deal, the two companies will apply with the Securities and Exchange Commission to incorporate the new company with an initial capital stock of 100 million shares, valued at P1 apiece. This new joint venture company will also have an initial paid-in capital of P40 million.
ABS-CBN will have a minority stake in the venture, with House Speaker Martin Romualdez’s holding firm, Prime Media, as majority shareholder.
Financials broken down showed that Prime Media will own a 51% stake, with 20.4 million shares valued at P20.4 million while ABS-CBN will own 49% of the joint venture company for 19.6 million shares at P19.6 million.
The joint venture agreement will be a content pipeline of sorts, as the new company that will emerge from this partnership will supply content and programs to broadcasters and third-party platforms such as Philippine Collective Media Corp, which signed a memorandum of understanding with Prime Media in 2021.
“This gives some of our former personnel a chance to find job opportunities. It is also a way to continue providing accurate and balanced news and information to the country,” ABS-CBN said.
Shares at ABS-CBN traded 5.31% up at P7.34 apiece, while shares at Prime Media traded down 6.27% at P2.69 apiece as of 2:50 pm.